Pass TPP to Show US Strength, Obama Tells Congress in State of the Union
President Barack Obama during his State of the Union address on Jan. 12 urged Congress to pass the Trans-Pacific Partnership, claiming that it will open markets, advance U.S. leadership in Asia, and protect workers and the environment. Obama also touted the agreement’s 18,000 proposed tariff cuts on U.S.-made products and asserted that TPP would preclude China from setting the economic rules in the Pacific Rim region. “You want to show our strength in this new century?” Obama told the joint session of Congress. “Approve this agreement. Give us the tools to enforce it. It’s the right thing to do.” Opinions vary on timing for a TPP vote, though several staffers on Capitol Hill said a vote isn’t expected in the near future (see 1601060027).
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Following Obama’s address, Senate Finance Chairman Orrin Hatch, R-Utah, juxtaposed the GOP-led Congress’ passage of the Trade Promotion Authority with what he said was partisanship expressed by Obama during the speech (here). “With Republicans at the helm, Congress was finally back to work in 2015. Trade Promotion Authority is back on the books, and the nation is once again equipped to ensure trade agreements, like the Trans-Pacific Partnership, are the best possible deal for America,” Hatch said in a statement. “But tonight, the President regrettably reverted back to a partisan tone … advocating for more misguided policies that will only grow the government, not the economy.”
Ways and Means member Rep. Erik Paulsen, R-Minn., expressed hope that Congress could work with him on trade deals until a new president is sworn in. “I do think there is agreement to be found with the President, and I agree with his points on promoting trade and American goods and services so that businesses can reach the 95% of customers living outside of the United States,” Paulsen said in a statement.
Industry reacted mostly positively to Obama’s words on TPP, with the National Foreign Trade Council, U.S. Council for International Business (here), and Business Roundtable (here) issuing post-speech statements that essentially echoed their previous public endorsements of the agreement, while urging Congress and Obama to conclude the pact to help the U.S. economy. “The Asia-Pacific region is dynamic and ever-growing, and opportunities abound for the expansion of U.S. market access in the 11 other TPP economies,” NFTC said.
The Footwear Distributors and Retailers of America said the agreement should help footwear consumers and companies save $450 million in the first year of TPP implementation and $6 billion over the first decade. "We applaud the President for using his final State of the Union address to make a bipartisan appeal on an issue that is important to the hundreds of thousands of Americans who work in footwear design, innovation, retail, marketing, administration, warehousing and logistics," FDRA said in a statement. "In the coming months, FDRA will continue to lead the charge with congressional leaders to explain how TPP will strengthen footwear jobs throughout the U.S. and deliver real savings to American consumers.”
The AFL-CIO disagreed on the pact's benefits a vowed to continue the fight against passage. "President Obama made clear tonight that he intends the TPP to be a lasting legacy of his administration," said the group's Trade Policy Specialist Celeste Drake. "Unfortunately, the TPP fails working people. It will intensify downward pressure on wages and threaten jobs, food safety and even our democracy—undermining his legacy instead of enhancing it. Working people have supported the president through many difficult fights. We deserve better and will fight to defeat the TPP."
Email ITTNews@warren-news.com for copies of Paulsen's, NFTC's, AFL-CIO, and FDRA's statements.